Review: The Bull Overcomed by the Bear?

Today I looked at the world market indices with fear. All the major stock exchanges showed a red. The US market last friday, KLSE, SGX, HKSE, MCI and australia all showed red. Only the Chinese market, Thai market showd me the green.

Looking at the top 30 volume on SGX showed more red than green. Thats not a good reflection of the performance this morning, where all i saw was red. Only on 1 - 5 stocks in the top 30 volume did i see green.

So what the hell is going on?

Well, the market is in intense anticipation for the upcoming US interest rates meeting. Whether the market will be a bear or bull will really be the result of what they say before the meeting, and what's changed after the meeting. Simply a simple negative remark can spark a global market correction, like the one last year, where after all the fan fare, interest rates were left unchanged after all, leaving all the professional analysts red faced.

"Those professional analysts were really the messengers of what didn't happen. They are the ones that affect whether the market is bull or bear."

But locally, we have a short term relieve. Singaporean companies can look forward to a good budget announcement this week, that may be able to offset any negative effects from the USA.

So would I recommend selling your shareholding to escape any volatility? First of all,no cause thats what you call trading, not investing. And in this season of financial year reports, you can look forward to a good financial report for FY06 (that is if your company is a good growth company), which will reinforce your shareholdings current price.

"When you trade, only your broker is happy."

Watch the market closely for the next few days. Watch the budget 2007 announcement. Watch any reckless comments by the USA officials. But do not dismay if a correction comes. Not all stocks went bear last year. Good companies like Sino Env and China Hong Xing were just 2 of the companies taht did not get affected that bad least year.